KUALA LUMPUR (Reuters) - Malaysia's Felda Global Ventures Holdings, the world's third-largest palm oil plantation operator, plans to buy Asian Plantations for 628 million ringgit ($249 million).
The acquisition of APL would allow FGV to expand its palm oil estates in Sarawak and is part of its long-term expansion strategy, Chief Executive Mohd Emir Abdullah said in a statement to the stock exchange on Friday.
Singapore-incorporated APL has over 60,000 acres of palm oil plantations in the state of Sarawak. It is also listed on the Alternative Investment Market of the London Stock Exchange.
FGV is offering 2.20 pounds per share, a 5.4 per cent premium over APL's weighted average price on the market in the previous session.
Last October, FGV completed the purchase of Pontian United Plantations for 1.2 billion ringgit.